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Public Bikesharing in North America: Early Operator Understanding and Emerging Trends

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Public Bikesharing in North America: Early Operator Understanding and Emerging Trends PUBLIC BIKESHARING IN NORTH AMERICA: EARLY OPERATOR UNDERSTANDING AND EMERGING TRENDS Susan A. Shaheen, Ph.D. Lecturer and Co-Director, Transportation Sustainability Research Center (TSRC) University of California, Berkeley 1301 S. 46th Street. Bldg 190; Richmond, CA 94804-4648 510-665-3483 (O); 510-665-2183 (F); [email protected] Adam P. Cohen Research Associate, Transportation Sustainability Research Center (TSRC) University of California, Berkeley 1301 S. 46th Street. Bldg 190; Richmond, CA 94804-4648 510-665-3646 (O); 510-665-2183 (F); [email protected] Elliot W. Martin, Ph.D. Assistant Research Engineer, Transportation Sustainability Research Center (TSRC) University of California, Berkeley 1301 S. 46th Street. Bldg 190; Richmond, CA 94804-4648 510-665-3575 (O); 510-665-2183 (F); [email protected] 2013 Transportation Research Board Annual Meeting November 15, 2012 Shaheen, Cohen, and Martin. 2013 TRB Annual Meeting. November 15, 2012 1 PUBLIC BIKESHARING IN NORTH AMERICA: EARLY OPERATOR UNDERSTANDING AND EMERGING TRENDS ABSTRACT Public bikesharing—the shared use of a bicycle fleet—is an innovative mobility strategy that has recently emerged in major North American cities. Bikesharing systems typically position bicycles throughout an urban environment, among a network of docking stations, for immediate access. Approximately five years ago, information technology (or IT)-based bikesharing services began to emerge in North America. Since 2007, 27 IT-based programs have been deployed–26 are operational and one is now defunct. Bikesharing growth potential in North America is examined on the basis of a survey of all 15 IT-based public bikesharing systems operating in the United States and all four programs operating in Canada, as of January 2012. These programs account for 172,070 users and 5,238 bicycles and 44,352 users and 6,235 bicycles in the United States and Canada, respectively. This paper reviews early operator understanding of North American public bikesharing and discusses emerging trends for prospective program start-ups. KEY WORDS: Public bikesharing, North America, public transit, information technology, survey WORD COUNT: 5,635 words, plus 3 tables and 4 figures INTRODUCTION Public bikesharing has emerged to offer a new form of mobility that is altering the shape of public transportation systems in North American cities. Bikesharing systems operate by providing publicly accessible shared-use bicycles within an urban environment. Much of the recent growth in bikesharing has involved information technology (or IT) in which users access bikes at kiosks that communicate directly with a central system that permits the release and return of a bicycle. Since 1965 bikesharing has operated in less advanced forms, expanding worldwide to over five continents: Europe, North America, South America, Asia, and Australia (1). The recent evolution towards IT-based bikesharing has sparked a new era and rapid program proliferation. Public bikesharing systems operate with bicycle docking stations that are typically unattended and concentrated in urban settings. Unlike most carsharing systems (short-term auto access), bicycles are accessible instantaneously, without reservation, and trips can be one-way (users can drop-off bicycles at any docking station with an available opening to securely lock the bicycle). For most systems, trips made in less than 30 minutes are free. Users can sign-up with bikesharing systems on an annual, monthly, daily, or per trip basis. Systems allow users to access bicycles by swiping a credit card, a membership card, and/or by mobile phone. When they finish using the bike, they can return it to any dock where there is room (including the same starting dock) and end their session. Public bikesharing offers a number of environmental, social, and transportation-related benefits. It provides a quicker and zero emissions means to access public transportation or to make other short-distance trips between docking stations (1-2). Potential bikesharing benefits include: 1) increased mobility; 2) economic benefits (including cost savings from modal shifts and increased tourism); 3) lower implementation and operational costs (in contrast to shuttle services); 4) reduced traffic congestion; 5) reduced fuel use; 6) increased public transit use; 7) increased health benefits; and 8) greater environmental awareness (1). Shaheen, Cohen, and Martin. 2013 TRB Annual Meeting. November 15, 2012 2 Although before-and-after studies documenting public bikesharing benefits are limited, a few North American programs have conducted user surveys to record program impact. Table 1 presents a summary of trips, distance traveled, and estimated carbon dioxide (CO2) reductions from studies completed in the U.S. and Canada, including results from the authors’ recent survey of four public bikesharing operators in North America. The emission-reduction estimates vary substantially across studies due to different assumptions about user behavior, trip distribution, and trip substitution. Key assumptions that influence CO2 reduction estimates pertain to public bikesharing trips that displace automobile trips. In addition to studies that have demonstrated reduced CO2 emissions and a modal shift toward bicycle use, evaluations indicate an increased public awareness of bikesharing as a viable transportation mode. Fifty-nine percent of Nice Ride Minnesota users said that they liked the “convenience factor” most about their program (3). Denver B-cycle achieved a 30% increase in riders and a 97% increase in the number of rides taken in 2011 (4). These studies coupled with anecdotal evidence suggest that public bikesharing programs have a positive impact on the public perception of bicycling as a viable transportation mode. TABLE 1 Impacts of Public Bikesharing in North America Change In Change in Trips Km CO Reduction Public Respondents Canada Year of Data 2 Vehicle per Year per Year (kg per Year) Transit Driving Less Often Ownership Usa ge BIXI Montreal 2011 7,300,0005 +16.2%6 -6.0%6 36.3%6 BIXI Toronto 2011 +11.0%6 -2.6%6 25.4%6 United States Boulder B-cycle 2011 18,5007 47,1747 Capital Bikeshare (D.C.) 2011 1,249,4546 -4.6%6 0.45%6 Denver B-cycle 2011 202,7318 694,9428 280,3398 New Balance Hubway (Boston) 2011 140,0009 Madison B-cycle 2011 18,50010 46,80510 Nice Ride Minnesota (Twin Cities) 2011 217,5306 +28.3%6 -4.5%6 52.4%6 11 11 San Antonio B-cycle 2011 22,709 38,575 By addressing the storage, maintenance, and parking aspects of bicycle ownership, public bikesharing encourages cycling among users who may not otherwise use bicycles. Additionally, the availability of a large number of bicycles in multiple dense, nearby locations, frequently creates a “network-effect” further encouraging cycling and more specifically, the use of bikesharing for regular trips (e.g., commuting, errands). This paper reviews early operator understanding of North American IT-based public bikesharing (2007-2012) and reviews emerging trends for prospective program start-ups. There are four sections to this paper: 1) methodology, 2) market dynamics, 3) operational overview, and 4) conclusion. METHODOLOGICAL APPROACH From May 2011 to June 2012, the authors completed stakeholder interviews on the state of public bikesharing in North America and conducted a total of 38 expert and operator interviews. Nineteen interviews were conducted with all IT-based public bikesharing programs operating in Shaheen, Cohen, and Martin. 2013 TRB Annual Meeting. November 15, 2012 3 the U.S. and Canada as of April 2012. An additional 14 interviews were conducted with a combination of city and regional transportation personnel, public transit operators, policymakers, community bike coordinators, and bicycle/bikesharing vendors. Finally, the authors completed five interviews with brokers, underwriters, and attorneys in the bikesharing insurance industry in June 2012. The purpose of these interviews were to twofold: 1) document the state of IT-based North American public bikesharing in 2012, and 2) highlight emerging trends for prospective start-ups. The scope of the study was focused on bikesharing programs accessible to the public and did not include college/university programs or those with a restricted user base. During the course of the study, the U.S. and Canadian dollars traded near parity, and are treated as equal through the following discussion. NORTH AMERICAN BIKESHARING MARKET DYNAMICS The first North American public bikesharing program launched as a free system in Portland, OR in 1994. Over the next five years, similar public bikesharing programs emerged, all of which were modeled after either white-bike systems, which are also known as free bike systems, or alternatively as coin-deposit systems, which require a refundable coin deposit to use a bicycle (12). Bikesharing has evolved from these early systems (mid-1990s) to the deployment of IT- based bikesharing in the late-2000s (12). In total, since 1994, there have been 40 program startups and eleven program closures in the U.S. and Canada (1, 6). This evolution has been categorized into four key phases or generations, which are summarized in Figure 1. Since 2007, there have been 22 IT-based bikesharing program startups and one closure in the U.S., as well as four program launches in Canada. As of January 2012, 15 United States (U.S.) IT-based bikesharing systems accounted for 172,070 users and 5,238 bicycles, and the four Canadian programs accounted for another 44,352 users and 6,235 bicycles (summarized in Table 2). As of November 1, 2012, an additional six programs launched in the U.S. (for a total of 25 North American programs). The six additional program locations include: Houston B-cycle (TX); Spokies in Oklahoma City (OK); DecoBike Long Beach, NY; Kansas City B-Cycle (MO); Charlotte B-Cycle (NC); and Bike Nation Anaheim (CA). Shaheen, Cohen, and Martin. 2013 TRB Annual Meeting. November 15, 2012 4 First generation: “Free bikes” Bicycles are typically painted one color, left unlocked, and placed randomly throughout an area for free use.
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